VeriSign, Inc. and subsidiaries ("Verisign") reported revenue of $296
million for the fourth quarter of 2017, up 3.2 percent from the same
quarter in 2016. Verisign reported net income of $103 million and
diluted earnings per share (diluted "EPS") of $0.83 for the fourth
quarter of 2017, compared to net income of $106 million and diluted EPS
of $0.84 for the same quarter in 2016. The operating margin was 59.7
percent for the fourth quarter of 2017 compared to 59.0 percent for the
same quarter in 2016.

Fourth Quarter Non-GAAP Financial Results

Verisign reported, on a non-GAAP basis, net income of $119 million and
diluted EPS of $0.96 for the fourth quarter of 2017, compared to net
income of $115 million and diluted EPS of $0.92 for the same quarter in
2016. The non-GAAP operating margin was 64.1 percent for the fourth
quarter of 2017 compared to 63.9 percent for the same quarter in 2016. A
table reconciling the GAAP to the non-GAAP results (which excludes items
described below) is appended to this release.

2017 GAAP Financial Results

For the year ended Dec. 31, 2017, Verisign reported revenue of $1.17
billion, up 2.0 percent from $1.14 billion in 2016. Verisign reported
net income of $457 million and diluted EPS of $3.68 in 2017, compared to
net income of $441 million and diluted EPS of $3.42 in 2016. The
operating margin for 2017 was 60.7 percent compared to 60.1 percent in
2016.

2017 Non-GAAP Financial Results

Verisign reported, on a non-GAAP basis, net income of $492 million and
diluted EPS of $3.96 for 2017, compared to net income of $465 million
and diluted EPS of $3.61 for 2016. The non-GAAP operating margin for
2017 was 65.3 percent compared to 64.5 percent for 2016.

Impact of Tax Legislation

The Tax Cuts and Jobs Act ("Tax Act") was enacted on Dec. 22, 2017.
Fourth quarter and full year 2017 GAAP financial results include a net
$9 million tax expense increase resulting from the Tax Act. This
increase is comprised of a provisional income tax expense of $196
million consisting of one-time U.S. taxes on accumulated foreign
earnings triggered by the Tax Act and related foreign withholding taxes,
both net of resulting previously unrecognized foreign tax credits,
offset by an income tax benefit of $187 million resulting from the
revaluation of net deferred tax liabilities from 35 percent to the 21
percent U.S. federal income tax rate in the Tax Act. The provisional
income tax expense on accumulated foreign earnings reflects our current
best estimate, which may be adjusted over the course of 2018. By early
second quarter of 2018, Verisign intends to repatriate approximately
$1.1 billion of cash held by foreign subsidiaries, net of withholding
taxes, based on current exchange rates.

"2017 was another solid year for Verisign. There was further expansion
of the domain name base and revenues; we generated and efficiently
returned value to shareholders; and we renewed the .net registry
agreement for another six years, until 2023. We protected, grew and
managed the business in 2017," said Jim Bidzos, Executive Chairman,
President and Chief Executive Officer.

Financial Highlights

Verisign ended 2017 with cash, cash equivalents and marketable
securities of $2.4 billion, an increase of $617 million from year-end
2016.

Cash flow from operations was $199 million for the fourth quarter of
2017 and $703 million for the full year 2017 compared with $205
million for the same quarter in 2016 and $693 million for the full
year 2016.

During the fourth quarter, Verisign repurchased 1.3 million shares of
its common stock for $145 million. During the full year 2017, Verisign
repurchased 6.3 million shares of its common stock for $593 million.

Effective Feb. 8, 2018, the Board of directors approved an additional
authorization for share repurchases of approximately $586 million of
common stock, which brings the total amount to $1.0 billion authorized
and available under Verisign's share repurchase program, which has no
expiration.

For purposes of calculating diluted EPS, the fourth quarter diluted
share count included 25.2 million shares related to subordinated
convertible debentures, compared with 20.6 million shares for the same
quarter in 2016. These represent diluted shares and not shares that
have been issued.

Business Highlights

Verisign ended the fourth quarter with 146.4 million .com and .netdomain
name registrations in the domain name base, a 2.9 percent increase
from the end of the fourth quarter of 2016, and a net increase of 0.57
million during the fourth quarter of 2017.

In the fourth quarter, Verisign processed 9.0 million new domain name
registrations for .com and .net, as compared to 8.8 million for the
same quarter in 2016.

The final .com and .net renewal rate for the third quarter of 2017 was
74.4 percent compared with 73.0 percent for the same quarter in 2016.
Renewal rates are not fully measurable until 45 days after the end of
the quarter.

Non-GAAP Financial Measures and Adjusted EBITDA

Verisign provides quarterly and annual financial statements that are
prepared in accordance with generally accepted accounting principles
(GAAP). Along with this information, management typically discloses and
discusses certain non-GAAP financial information in quarterly earnings
releases, on investor conference calls and during investor conferences
and related events. This non-GAAP financial information does not include
the following types of financial measures that are included in GAAP:
stock-based compensation, unrealized gain/loss on the contingent
interest derivative on the subordinated convertible debentures, and
non-cash interest expense. Non-GAAP net income is decreased by amounts
accrued, if any, during the period for contingent interest payable
resulting from upside or downside triggers related to the subordinated
convertible debentures and is adjusted for an income tax rate of 25
starting from the second quarter of 2017, and 26 percent for other
periods presented herein, both of which differ from the GAAP income tax
rate.

On a quarterly basis, Verisign also provides Adjusted EBITDA. Adjusted
EBITDA is a non-GAAP financial measure and is calculated in accordance
with the terms of the indentures governing Verisign's senior notes.
Adjusted EBITDA refers to net income before interest, taxes,
depreciation and amortization, stock-based compensation, unrealized gain
/ loss on the contingent interest derivative on the subordinated
convertible debentures and unrealized gain / loss on hedging agreements
and gain on the sale of a business.

Management believes that this non-GAAP financial data supplements the
GAAP financial data by providing investors with additional information
that allows them to have a clearer picture of Verisign's operations and
financial performance and the comparability of Verisign's operating
results from period to period. The presentation of this additional
information is not meant to be considered in isolation nor as a
substitute for results prepared in accordance with GAAP.

The tables appended to this release include a reconciliation of the
non-GAAP financial information to the comparable financial information
reported in accordance with GAAP for the given periods.

Today's Conference Call

Verisign will host a live conference call today at 4:30 p.m. (EST) to
review the fourth quarter and full year 2017 results. The call will be
accessible by direct dial at (888) 676-VRSN (U.S.) or (323) 794-2149
(international), conference ID: Verisign. A listen-only live web cast of
the conference call and accompanying slide presentation will also be
available at https://investor.verisign.com.
An audio archive of the call will be available at https://investor.verisign.com/events.cfm.
This news release and the financial information discussed on today's
conference call are available at https://investor.verisign.com.

About Verisign

Verisign, a global leader in domain names and internet security, enables
internet navigation for many of the world's most recognized domain names
and provides protection for websites and enterprises around the world.
Verisign ensures the security, stability and resiliency of key internet
infrastructure and services, including the .com and .net domains and two
of the internet's root servers, as well as performs the root zone
maintainer function for the core of the internet's Domain Name System
(DNS). Verisign's Security Services include Distributed Denial of
Service Protection and Managed DNS. To learn more about what it means to
be Powered by Verisign, please visit Verisign.com.

VRSNF

Statements in this announcement other than historical data and
information constitute forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 as amended and Section 21E of
the Securities Exchange Act of 1934 as amended. These statements involve
risks and uncertainties that could cause our actual results to differ
materially from those stated or implied by such forward-looking
statements. The potential risks and uncertainties include, among others,
whether the U.S. Department of Commerce will approve any exercise by us
of our right to increase the price per .com domain name, under certain
circumstances, the uncertainty of whether we will be able to demonstrate
to the U.S. Department of Commerce that market conditions warrant
removal of the pricing restrictions on .com domain names and the
uncertainty of whether we will experience other negative changes to our
pricing terms; the failure to renew key agreements on similar terms, or
at all; new or existing governmental laws and regulations in the U.S. or
other applicable foreign jurisdictions; system interruptions, security
breaches, attacks on the internet by hackers, viruses, or intentional
acts of vandalism; the uncertainty of the impact of changes to the
multi-stakeholder model of internet governance; changes in internet
practices and behavior and the adoption of substitute technologies; the
success or failure of the evolution of our markets; the operational and
other risks from the introduction of new gTLDs by ICANN and our
provision of back-end registry services; the highly competitive business
environment in which we operate; whether we can maintain strong
relationships with registrars and their resellers to maintain their
marketing focus on our products and services; challenging global
economic conditions; economic, legal and political risk associated with
our international operations; our ability to protect and enforce our
rights to our intellectual property and ensure that we do not infringe
on others' intellectual property; the outcome of legal or other
challenges resulting from our activities or the activities of registrars
or registrants, or litigation generally; the impact of our new strategic
initiatives, including our IDN gTLDs; whether we can retain and motivate
our senior management and key employees; and the impact of unfavorable
tax rules and regulations. More information about potential factors that
could affect our business and financial results is included in our
filings with the SEC, including in our Annual Report on Form 10-K for
the year ended Dec. 31, 2016, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K. Verisign undertakes no obligation to update any of
the forward-looking statements after the date of this announcement.

Common stock—par value $.001 per share; Authorized shares:
1,000,000; Issued shares: 325,218 at December 31, 2017 and 324,118
at December 31, 2016; Outstanding shares: 97,591 at December 31,
2017 and 103,091 at December 31, 2016

325

324

Additional paid-in capital

16,437,135

16,987,488

Accumulated deficit

(17,694,790

)

(18,184,954

)

Accumulated other comprehensive loss

(2,941

)

(3,453

)

Total stockholders' deficit

(1,260,271

)

(1,200,595

)

Total liabilities and stockholders' deficit

$

2,941,188

$

2,334,572

VERISIGN, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data)

(Unaudited)

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

Revenues

$

295,501

$

286,271

$

1,165,095

$

1,142,167

Costs and expenses:

Cost of revenues

47,680

49,100

193,326

198,242

Sales and marketing

25,488

21,819

81,951

80,250

Research and development

12,773

13,745

52,342

59,100

General and administrative

33,128

32,845

129,754

118,003

Total costs and expenses

119,069

117,509

457,373

455,595

Operating income

176,432

168,762

707,722

686,572

Interest expense

(40,467

)

(28,982

)

(136,336

)

(115,564

)

Non-operating income, net

6,082

2,073

27,626

10,165

Income before income taxes

142,047

141,853

599,012

581,173

Income tax expense

(39,210

)

(36,301

)

(141,764

)

(140,528

)

Net income

102,837

105,552

457,248

440,645

Realized foreign currency translation adjustments, included in net
income

530

—

530

85

Unrealized (loss) gain on investments

(354

)

(768

)

385

533

Realized loss (gain) on investments, included in net income

37

—

(403

)

(78

)

Other comprehensive income (loss)

213

(768

)

512

540

Comprehensive income

$

103,050

$

104,784

$

457,760

$

441,185

Earnings per share:

Basic

$

1.05

$

1.01

$

4.56

$

4.12

Diluted

$

0.83

$

0.84

$

3.68

$

3.42

Shares used to compute earnings per share

Basic

98,215

104,080

100,325

107,001

Diluted

124,257

125,454

124,180

128,833

VERISIGN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Year Ended December 31,

2017

2016

Cash flows from operating activities:

Net income

$

457,248

$

440,645

Adjustments to reconcile net income to net cash provided by
operating activities:

VERISIGN, the VERISIGN logo, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in other countries.
All other trademarks are property of their respective owners.